Announcing yet another lag beyond a new in-service date for its Kemper County integrated gasification combined cycle (IGCC) project, Southern Co. may raise discussions with regulators about the possibility of scrapping the project’s gasification component.

The company’s subsidiary Mississippi Power last said the first-of-its-kind project should begin operations by May 31. On May 31, however, the utility announced that the facility “is not currently fully operational.” It also said it would delay a monthly project status report that was due on June 1 to the Mississippi Public Service Commission (MPSC). It plans to submit the report on June 5 instead, because “the company continues to assess the project’s schedule and cost.”

On June 5, the company is also likely to make a rate filing for the project. It is expected to request an accounting order to defer all costs incurred after the project is operational, that are not subject to a cost cap, and are not already included in rates.

Mississippi law allows Mississippi Power to file both a traditional rate case and an alternative multi-year rate mitigation plan.…

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